HomeMy WebLinkAboutItem 5f. Authorization to Award HVAC Air Handler Replacement at Parking Services (Spec. 2000075-07) Item 5f
Department: Public Works
Cost Center: 5006
For Agenda of: 9/3/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Sandra Golonka, Capital Projects Manager
SUBJECT: AWARD CONSTRUCTION CONTRACT FOR HVAC AIR HANDLER
REPLACEMENT AT PARKING SERVICES, SPECIFICATION NUMBER
2000075-07
RECOMMENDATION
1. Award a Construction Contract to Smith Mechanical-Electrical-Plumbing in the
amount of $180,239.00 for the HVAC Air Handler Replacement at Parking Services
project, Specification Number 2000075-07; and
2. Authorize the City Manager to award the construction contract plus contingencies for
a total amount of $213,275.00; and
3. Authorize the City Engineer to approve Contract Change Orders up to the available
project budget and any amended budget subsequently approved by the City Manager
up to $200,000.
POLICY CONTEXT
On May 17, 2022, Council approved a Purchasing Policy Update to the Financial
Management Manual that required Council approval for Public Projects that cost over
$200,000.
Because the lowest responsive bid amount plus construction contract contingencies
exceeds $200,000, staff is returning to Council to request authorization to award the
construction contract. This will provide staff the authority to utilize all available
construction contingencies if necessary to complete the project.
DISCUSSION
The HVAC and Air Handler in Parking Services (Project) will replace the existing HVAC
unit and air handlers. The primary components and air ducting are from the original
construction in 1988. The air handlers re-circulate and condition air before pumping it
back into the building. The air handlers are old and nearing the end of their useful life.
The relief damper is also no longer functioning properly, causing the building temperature
to fluctuate or the HVAC to shut down. The engineering evaluation determined that the
current HVAC system needs a complete replacement of air handlers, dampers, ducting,
actuators, and condensing units. The replacement of the unit will increase energy
efficiency and occupancy comfort.
Page 131 of 229
Item 5f
On May 9, 2024, the City Manager authorized staff to advertise construction bids for the
HVAC Air Handler Replacement at Parking Services Project and authorized the Director
of Public Works to award the contract if the lowest responsible bid was within the
Engineers Estimate of $115,400 (Attachment A).
On July 2, 2024, two bids were received and opened (Attachment B). Smith Mechanical -
Electrical-Plumbing (Smith) provided the lowest responsive bid in the total amount of
$180,239.00.
Staff believes that the increase in costs above the Engineer's Estimate can generally be
attributed to the required night work for the interior portion of the project, aimed at
minimizing disruptions to staff and public service. In addition to recent economic trends
leading to overall cost increases in construction related to high demand for work with a
limited pool of qualified contractors.
Bid Summary Bid Total
1 Engineer's Estimate $ 115,400.00
2 Smith Mechanical- Electrical- Plumbing $ 180,239.00
3 Dahl Air Conditioning, Inc. $ 193,000.00
The Contractor’s references, license, and registration with the Department of Industrial
Relations have been verified. Staff is recommending that the Bid Total be awarded to
Smith. To address potential risks, staff has allocated a 15% contingency. This serves as
a safeguard against unforeseen challenges such as system reconfiguration, unrepairable
parts, weather-related issues, and contractor coordination to ensure that service to th e
public is uninterrupted. The contract amount plus the contingency will exceed the
purchasing threshold requiring approval by the City Council.
Additionally, the cost of a temporary A/C unit is included in the budget as a precautionary
measure to address any concerns regarding staff comfort.
CONCURRENCE
This Project has concurrence from the Public Works Department, including the Facilities
Maintenance Program, Parking Services, and from the Community Development
Department.
ENVIRONMENTAL REVIEW
The Project qualifies for an Exemption to the California Environmental Quality Act
pursuant to State CEQA Guidelines Sections 15301 (Existing Facilities) and 15302
(Replacement or Reconstruction) because it consists of improvements to an existing
building with a similar system in terms of size, capacity, and function. The replacement
unit is more energy efficient and will remain within its current structural limits. A Notice of
Exemption has been filed through the Community Development Department.
Page 132 of 229
Item 5f
FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-25
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Project
Cost
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Major Facilities
Maintenance (2000075-
07 & 2000075-07.01)
$222,605 $0 $213,275 $9,330
Total $222,605 $0 $213,275 $9,330
The Project was originally identified in the 2021-23 Financial Plan (page 399) where it
was allocated $30,000 for design services. The 2023-25 Financial Plan (page 363)
identified an additional allocation of $230,000 in FY 2023 -24 to support this project from
the Major Facility Maintenance account (2000075). As of July 1 8, 2024, there is a current
balance of $222,605 in the individual Major Facility Maintenance project tasks (2000075-
07 and 07.01).
Staff expects that the total available budget of $222,605.00 will be sufficient to complete
the project.
Fiscal Impact Summary
HVAC Air Handler Parking Services, Spec No. 2000075-07
HVAC Air Handler Parking
Services
(2000075-07)
Major Maintenance Facilities
Total
Construction $180,239 $180,239
Contingencies (15%) $27,036 $27,036
Portable A/C Unit: $5,000 $5,000
Printing: $1,000 $1,000
Total Project Cost $213,275 $213,275
Available Fund Balance $222,605
Remaining Balance $9,330
Page 133 of 229
Item 5f
ALTERNATIVES
The City Council could deny the request to award the project. Staff does not
recommend this alternative as the HVAC system is nearing its end of useful life and in
danger of failure. This could lead to costly emergency repairs in the future.
ATTACHMENTS
A - City Manager Report to Advertise
B - Bid Results
C - Draft Agreement with Smith Mechanical-Electrical-Plumbing
Page 134 of 229
City of San Luis Obispo, City Manager Report
Final City Manager Approval Approver Name Date Approved
Interim City Manager WM 5/9/24
Reviewer Routing List Reviewer Name Date Reviewed
Finance Riley K 4/26/2024
City Engineer BN 4/29/2024
City Attorney MK 4/22/2024
Department Analyst BP 4/12/2024
Capital Improvements Program
Administrative Manager
MK 4/16/2024
April 11, 2024
FROM: Matt Horn, Director of Public Works MH 4/19/2024
PREPARED BY: Sandra Golonka, Capital Projects Manager III
SUBJECT: Advertise the HVAC Air Handler at Parking Services, Specification
Number 2000075-07
RECOMMENDATION
1. Approve the project plans and specifications for the HVAC Air Handler at Parking Services,
Specification Number 2000075-07; and,
2. Authorize staff to advertise for bids; and,
3. Authorize the Director of Public Works to award the construction contract if the lowest
responsible bid is within the Engineer’s Estimate of $115,400.
DISCUSSION
Background
The HVAC and Air Handler in Parking Services (Project) will replace the existing HVAC unit and
air handlers. The primary components and air ducting are from the original construction in 1988.
The air handlers re-circulate and condition air before pumping it back into the building. Parking
Services uses an air handler, but it is old and nearing the end of its useful life. The relief damper
is no longer functioning properly, causing the building temperature to fluctuate or the HVAC to
shut down.
To determine the current state of the existing HVAC system in Parking Services, City staff
contracted with BMA Mechanical to prepare construction plans (Attachment A) and special
provisions (Attachment B) to address the issue. The engineering evaluation determined that the
current HVAC system needs a complete replacement of air handlers, dampers, ducting, actuators,
and condensing units. The replacement of the unit will increase energy efficiency and occupancy
comfort.
Page 135 of 229
Authorization to Advertise HVAC Air Handler Parking Services, Spec No. 2000075-07 Page 2
CONCURRENCE
This Project has concurrence from the Public Works Department, including the Facilities
Maintenance Program, and from the Community Development Department.
ENVIRONMENTAL REVIEW
The Project qualifies for an Exemption to the California Environmental Quality Act pursuant to
State CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or
Reconstruction) because it consists of improvements to an existing building with a similar system
in terms of size, capacity, and function. The replacement unit is more energy efficient and will
remain within its current structural limits. A Notice of Exemption will be filed through the
Community Development Department.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
The Project was originally identified in the 2021-23 Financial Plan (page 399) where it was
allocated $30,000 for design services that have since then been expended. The 2023-25 Financial
Plan (page 363) identified an additional allocation of $230,000 in FY 2023-24 to support this
project from the Major Facility Maintenance account (2000075). As of March 19, 2024, there is
a current balance of $259,736.30 in the individual project task (2000075-07) and $1,911,047.30 in
the overall Major Facilities Maintenance account (2000075).
The Engineer’s Estimate is $115,400 and the total cost of the project is estimated to be $154,480
per the table below. Staff expects that the total available budget of $259,736.30 will be sufficient
to complete the project.
Fiscal Impact Summary
HVAC Air Handler Parking Services, Spec No. 2000075 -07
HVAC Air Handler
Parking Services
(2000075-07)
Project Total Costs
Parking Fund
Engineer's Estimate $115,400 $115,400
Contingencies (20%) $23,080 $23,080
Total Construction Estimate $138,480 $138,480
Construction Administration: $10,000 $10,000
Portable A/C Unit: $5,000 $5,000
Printing: $1,000 $1,000
Page 136 of 229
Authorization to Advertise HVAC Air Handler Parking Services, Spec No. 2000075-07 Page 3
Total Project Cost $154,480 $154,480
Funding Sources
HVAC Air Handler Parking Services
(2000075-07)
Current Balance $259,736
Project Funding $154,480
Post Project Balance $105,256
Project Total Funding $154,480
Reference Link: Budget Table HVAC Parking Services
ALTERNATIVES
1. Deny the approval to advertise the project. The City Manager could choose to deny the
authorization to advertise the project, but staff does not recommend this alternative as the
HVAC system is nearing its end of useful life and in danger of failure. This could lead to costly
emergency repairs in the future.
ATTACHMENTS
A- HVAC Replacement Parking Services, Spec No. 2000075-07
B- Specials HVAC Replacement Parking Services, Spec No. 2000075 -07
https://slocitycloud.sharepoint.com/:f:/s/SLOHub/Public-
Works/cipengineering/Evh0yujSEOhAkbF34zE5NK4Bye6muZv1NPI0KqqivVKA_w?e=dYuskl
Page 137 of 229
Page 138 of 229
Bid Opening: 07/02/2024
Item #Item Description
Unit of
Measure
Estimated
Quanity
Item
price Total
Item
price Total
1 DEMOLITION LS ------$6,788.00 ---$4,500.00
2 DUCTWORK LS ------$52,995.00 ---$36,500.00
3 REFIRGERANT PIPING LS ------$12,530.00 ---$18,000.00
4 EQUIPMENT LS ------$62,805.00 ---$74,500.00
5 ELECTRICAL LS ------$18,145.00 ---$20,000.00
6 STARTUP, TEST, & BALANCE LS ------$6,003.00 ---$18,500.00
7 FIRE ALARM INTERGRATION LS ------$6,570.00 $6,500.00
8 LANDSCAPING GRAVEL LS ------$2,862.00 $4,500.00
9
CONTROLS- INTERGRATION OF
MITSUBISHI/TRANE TE-200 FOR
COMPATIBILITY OF FUTURE
INSTALLATION OF DDC
CONTROLS OVER BACNET IP LS ------$11,191.00 $6,500.00
10 AIR BALANCING REPORT LS ------$350.00 $3,500.00
$180,239.00 $193,000.00
HVAC AIR HANDLER REPLACEMENT AT PARKING SERVICES, SPECIFICATION NO. 2000075-07
Smith Mechanical,
Electrical, and
Plumbing
Dahl Air
Conditioning, Inc.
Total Project Bid
Page 139 of 229
Page 140 of 229
AGREEMENT
THIS AGREEMENT, made on ____________________________, by and between the
City of San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County,
California (hereinafter called the Owner) and Smith Mechanical-Electrical-Plumbing
(hereinafter called the Contractor).
WITNESSETH:
That the Owner and the Contractor for the consideration stated herein agree as follows:
ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be
performed, shall provide and furnish all of the labor, materials, necessary tools,
expendable equipment, and all utility and transportation services required to complete all
the work of construction of
HVAC AIR HANDLER REPLACEMENT AT PARKING SERVICES,
SPECIFICATION NO. 2000075-07
in strict compliance with the plans and specifications therefor, including any and all
Addenda, adopted by the Owner, in strict compliance with the Contract Documents
hereinafter enumerated.
It is agreed that said labor, materials, tools, equipment, and services shall be furnished and
said work performed and completed under the direction and supervision and subject to the
approval of the Owner or its authorized representatives.
ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration
for the faithful performance of this Contract, subject to any additions or deductions as
provided in the Contract Documents, the contract prices as follows:
Item
No.
Item Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)
1. Demolition LS 1 --- $6,788
2. Ductwork LS 1 --- $52,995.00
3. Refrigerant Piping LS 1 --- $12,530.00
4. Equipment LS 1 --- $62,805.00
5. Electrical LS 1 --- $18,145.00
6. Startup, Test, & Balance LS 1 --- $6,003.00
7. Fire Alarm Integration LS 1 --- $6,570.00
8. Landscaping Gravel LS 1 --- $2,862.00
9. Controls – Integration of
Mitsubishi/Trane TE-200 for
LS 1 --- $11,191.00
Page 141 of 229
compatibility off future installatiton
of DDC controls over BACnet IP
10. Air Balancing Report LS 1 --- $350.00
BID TOTAL: $180,239.00
Payments are to be made to the Contractor in compliance with and subject to the provisions
embodied in the documents made a part of this Contract.
Should any dispute arise respecting the true value of any work omitted, or of any extra work
which the Contractor may be required to do, or respecting the size of any payment to the
Contractor, during the performance of this Contract, said dispute shall be decided by the
Owner and its decision shall be final, and conclusive.
ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the
following documents, all of which are as fully a part thereof as if herein set out in full, and if
not attached, as if hereto attached:
1. Notice to Bidders and Information for Bidders
2. Standard Specifications and Engineering Standards
3. Special Provisions, any Addenda, Plans and Contract Change Orders
4. Caltrans Standard Specifications and Standard Plans 2015
5. Accepted Bid and Bid Bond
6. List of Subcontractors
7. Public Contract Code Sections 10285.1 Statement
8. Public Contract Code Section 10162 Questionnaire
9. Public Contract Code Section 10232 Statement
10. Labor Code Section 1725.5 Statements
11. Bidder Acknowledgements
12. Qualifications
13. Non-collusion Declaration
14. Agreement and Bonds
15. Insurance Requirements and Forms
ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal
counsel approved by City, and hold harmless City, its officers, officials, employees and
volunteers from and against all liability, loss, damage, expense, cost (including without
limitation reasonable legal counsel fees, expert fees and all other costs and fees of
litigation) of every nature arising out of or in connection with the Contractor’s negligence,
recklessness or willful misconduct in the performance of work hereunder or its failure to
comply with any of its obligations contained in this Agreement, except such loss or damage
which is caused by the sole or active negligence or willful misconduct of the City. Should
conflict of interest principles preclude a single legal counsel from representing both the City
and the Contractor, or should the City otherwise find the Contractor’s legal counsel
unacceptable, then the Contractor shall reimburse the City its costs of defense, including
without limitation reasonable legal counsel fees, expert fees and all other costs and fees of
Page 142 of 229
litigation. The Contractor shall promptly pay any final judgment rendered against the City
(and its officers, officials, employees and volunteers) with respect to claims determined by
a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful
performance. It is expressly understood and agreed that the foregoing provisions are
intended to be as broad and inclusive as is permitted by the law of the State of California
and will survive termination of this Agreement.
The Contractor obligations under this section apply regardless of whether such claim,
charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment,
civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee.
However, without affecting the rights of the City under any provision of this agreement, the
Contractor shall not be required to indemnify and hold harmless the City for liability
attributable to the active negligence of City, provided such active negligence is determined
by agreement between the parties or by the findings of a court of competent jurisdiction. In
instances where the City is shown to have been actively negligent and where the City’s
active negligence accounts for only a percentage of the liability involved, the obligation of
the Contractor will be for that entire portion or percentage of liability not attributable to the
active negligence of the City.
ARTICLE V. It is further expressly agreed by and between the parties hereto that should
there be any conflict between the terms of this instrument and the bid of said Contractor,
then this instrument shall control and nothing herein shall be considered as an acceptance
of the said terms of said bid conflicting herewith.
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this
year and date first above written.
CITY OF SAN LUIS OBISPO
a Municipal Corporation
CONTRACTOR:
Smith Mechanical-Electrical-Plumbing
By: ____________________________
By: _______________________________
Whitney McDonald,
City Manager
Larry Brannon
Its: President
APPROVED AS TO FORM (2nd signature required if Corporation)
By: ____________________________
By:_______________________________
J. Christine Dietrick,
City Attorney
Dane Austen
Its: Vice President
Page 143 of 229
Page 144 of 229